Speed and time are key elements on which the value chain depends. The consequences of failure are great for logistics and transportation.
Today, with Industry 4.1 taking over the world the competitive advantage of transportation and logistics is formed by two vital factors.
Transportation and Logistics Industry 4.1’s competitive advantage – speed and time
Enterprise leaders state that the transition to a real-time economy affects their organizational structure and business strategy.
As in other industries, as well as in logistics and transportation, customer experience and commitment are among the top priorities.
Digitalization was a prerequisite for a change in behavior, which is further enhanced by the experience that the customer is accustomed to in contexts other than interactions and transactions with businesses.
The three most important areas in which companies in the sector should invest are:
- Mobile technologies
- Cybersecurity tools
- Data analysis
At the end of the value chain is the end-user. Businesses around the world and in every industry are focusing entirely on the customer. The enterprise adapted to the client is:
- Focuses on fast data collecting
- Utilizes data analysis
- Accelerate the acquisition and processing of information
Fierce competition and slow transformation for Logistics and Transportation
Faced with fierce competition, fighting for many new customers, L organizations are lagging in digital transformation compared to other industries.
Several destructive forces undermine the livelihood and longevity of logistics companies:
- Highly funded startups
- Intelligent competitors
- New business models
- Partnerships and mergers of companies
Innovative companies are taking away large chunks of market share from traditional logistics organizations, offering more rational end-to-end value chain services digitizing their offerings and operations.
Traditional logistics companies are exposed to under-use of assets, old and inefficient manual processes, and outdated user interfaces.
Industry 4.1 approach for logistics and transportation
The successful transformation plan is based on three key digital actions: developing new business models and proposals, digitizing key operations, and building a strong internal digital base:
Development of new business models and offers. Driving L&T operations forwards with technological advancements
The new digitized platforms will help eliminate supply chain inefficiencies and facilitate customer interactions with the supplier in the digital space.
On the other hand, they will also solve the problems of under-utilization of assets, improve the match between supply and demand, and increase visibility and connectivity between systems.
Advanced analytics for the digitization of operations activities. By implementing powerful data-driven solutions, businesses can create new analytics tools to help them optimize their operations and efficiencies. This type of analytics is successfully applied to optimize operations in pricing, routing, and partial consolidation of shipments. They can also be sold to customers.
Providing solutions that increase operational visibility and connectivity between pre-protected systems allow stakeholders to connect more seamlessly throughout the value chain.
Customer experience. The placement of a digital front end not only provides customers with a comfortable one-stop-shop experience but also improves internal operational visibility and automates previously manual processes.
Process automation. Increasing the automation of the main internal business processes can facilitate labor-intensive logistics operations, such as digitization of orders, omnichannel interactions with the customer, the ability for users to resolve some of the failures that occur in the network.
Logistics and Transportation Enterprises Lay the Internal Digital Foundation
L&T companies need to actively target and attract young digital talents to compete successfully. Innovators help maintain efficiency, grow the business, and provide value to customers throughout the value chain.
Providing the principles and benefits of digitalization throughout the logistics organization helps to rationalize investment in more flexible technology systems.
Businesses in logistics and transportation need to be agile and resourceful in developing solutions to keep pace with digital technology and maximize its benefits.
Transportation and Logistics – A Hyper-Connected Future
Before they can start building their future in the long run, companies in the L&T sector must first organize their core – the enterprise.
This is not just about digital technologies and the transformation of processes, systems, and assets. It is also about culture and tackling the major challenges of making the workforce and leadership board fully prepared for this change.
With the entry of newly arrived companies, T&L companies can offer new services and even new types of solutions. This is an opportunity to go beyond their core market. Digital capabilities and information advances are key to closing existing gaps and transforming the entire value chain, creating new business models, and tackling industry challenges.